The matter was discussed at last week's meeting of Skegness Town Council after groups of men were reported around town.
According to the Home Office, the use of hotels for asylum seekers was "unacceptable" but it was "a necessary short-term solution to the global migration crisis".
However, a debate debate took place at the council meeting regarding the suitability of a family holiday resort for them even in the short-term.
"I don't want to cause unnecessary anxiety by saying this but it seems numbers of asylum seekers are being held in hotels in Skegness for indefinite periods and the community is being left in the dark," said John Byford in the public meeting ahead of the night's agenda.
"People are seeing groups of men around town and this is causing anxiety and fear amongst locals. People have a right to know what is going on.
"My main concern is for their well-being because they been been through a lot. If the town council can do anything to help them they should."
Coun Steve Kirk said he accepted the men had been through hard times.
"We should support them how we can but how can putting them up in a seaside resort be acceptable?
"A big city would be far more suitable where they could be part of a community."
Coun Carl Macey, the Lincolnshire County Council representative on the town council, told our newspaper afterwards the asylum seekers we’re sited in Skegness by the Home Office.
"There was no liaison with LCC or other local authority prior to their arrival, which was incredibly disappointing and has a led to a stern letter being sent from Coun Martin Hill, the leader of LCC.
"Since the arrival of the asylum seekers they have been supported by the local council and community groups.
"However, when it come to the long-term arrangements for their accommodation, I understand East Lindsey District Council will be working with them and I would hope to see them moving into more suitable accommodation in due course."
East Lindsey District Council referred our newspaper to the Home Office. A spokesperson said; "The use of hotels is unacceptable. It’s a necessary short-term solution to the global migration crisis and we are working with Local Authorities to find appropriate long-term accommodation”.
“It is made clear to residents that they behave responsibly, incidents are reported to the Home Office and we will investigate them carefully. Our New Plan for Immigration, which is going through parliament, will fix the broken asylum system so we can remove those with no right to be here quickly.”
In the case of any incidents being reported regarding asylum seekers, the HO spokesperson said: "All incidents are reported to the Home Office by the providers and this is a contractual requirement.
"We then work with the provider to put additional measures in place, if required. This will include working with other Statutory bodies including Police to investigate any criminal activities.
"We are grateful to all local authorities who currently support asylum seekers and would encourage all others to come forward to offer assistance.".